Exclusive news and research on the wine, spirits and beer business

Restaurant Industry Hails Stimulus Measures, Calls For Further Relief In 2021

December 23, 2020

After a devastating year for restaurants, the on-premise will see some relief with the passage of Congress’s $900 million stimulus bill, and the industry is hoping that further rescue measures will follow in 2021.

The stimulus bill includes $325 billion in relief for small businesses, including $280 million for another round of funding for the Paycheck Protection Program (PPP). Under the PPP, businesses may receive forgivable loans based on 2.5 times monthly payroll costs. But for restaurants, forgivable loans may rise to 3.5 times payroll. Restaurants are eligible for the PPP as long as they don’t employ more than 300 people at a given location.

Other key restaurant-related provisions in the package include allowing businesses to deduct expenses paid with PPP loans, and allowing business meals to be fully deducted from federal taxes for the next two years. Previously, businesses have been able to deduct only 50% of meal expenses.

“Today’s bipartisan action is a ‘down payment’ that recognizes the unique damage the pandemic is inflicting on our industry,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association. “There is much more to be accomplished, and we will continue to press in 2021 at the federal, state, and local level on behalf of the industry, our employees, and our customers.”

Likewise hailing the current rescue bill as “a vital step,” American Hotel & Lodging Association president and CEO Chip Rogers added, “We look forward to working with Congress and the new Administration on a longer-term stimulus package that will ensure our industry survives and is well positioned to help the country recover economically once the public health threat subsides.” —Daniel Marsteller

The National Restaurant Association recently noted that “eating and drinking places registered sales of $53.2 billion on a seasonally-adjusted basis in November, according to preliminary data from the U.S. Census Bureau. That was down $2.2 billion (or 4%) from October’s volume of $55.4 billion, and represented the industry’s lowest monthly sales total since July.”

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged : , ,

Get your first look at 2020 data and 2021 projections for the wine and spirits industries. Order your 2021 Impact Databank Reports. Click here.

Previous :  Next :